Here are straight forward answers to the most common questions on selling mortgage notes. We also invite you to visit our learning center filled with helpful articles and tips for creating and selling trust deeds, land contracts, and mortgage notes.

Why Owner Financing?

Owner financing is on the rise with more sellers agreeing to accept payments from buyers. There are many reasons people agree to take back a note, deed of trust, mortgage or contract including:

Quick sale of the property

Monthly income from the note

No hassles of bank financing (fees, delays, and strict underwriting)

More qualified buyers

Property is hard to finance

Selling Mortgage Notes – Why would I?

Circumstances change and many sellers would prefer cash today rather than small payments that trickle in each month. Here are just a few reasons people have sold their note payments for cash:

Retirement

Taxes

Investment Opportunity

Expensive Medical Care

Vacation

College Tuition

Unexpected Financial Changes

Peace of Mind – no more worrying if the buyer is going to make late payments or having to foreclose

What is a note appraisal?

A note appraisal reflects the current market value of your payments similar to what a real estate appraisal provides for real property. It shows what your future payments are worth in cash dollars today and is sometimes referred to as a “note analysis” or “quote”.

We recommend you have your note evaluated once a year as pricing may change based on market conditions

How do I maintain the value of my note?

Many of the items that affect the value of your note were determined at the time the property was sold. However, there are three things that you can do now to make your note more valuable:

keep good records and copies of the payments received,

obtain a copy of the property insurance policy from the buyer each year; and

verify the property taxes are paid when they come due (usually twice a year).

This will help maintain the value of your important asset and avoid any unpleasant surprises.

Can I sell all or part of my note?

We can purchase all or part of your remaining payments. Selling part of the payments allows you to receive a lump sum of cash up front, then payments when the note reverts back to you. We can even pay cash for a portion of each monthly payment.

Many people elect to sell just enough payments to meet their cash needs today and keep some of the future payments as an investment or nest egg. Always ask for an option that meets your needs.

How is the value of a note determined?

The value of a note is affected by the down payment, interest rate, payment amount, and term as well as the buyer’s credit rating and payment history. The type, condition, and value of the property also impact the value of your note.

The time value of money, which makes payments due now more valuable than payments due in 20 to 30 years, also plays a role in the evaluation process. Generally, due to inflation, money in your pocket today is worth more now than later. All of these elements will be taken into consideration in determining the current value of your note.

How will selling my note affect the payer?

The payer experiences no change in the way the payments are structured. The only change will be the address where the payments are mailed.

How do I get started?

The first step is to obtain a quote using our online form or by calling us at (954)606-9010. We also request copies of the documents relating to your transaction:

Note and Mortgage (Deed of Trust or Contract)

Closing statement

Buyer information

Pay history and current balance

Previous title insurance policy

Current hazard insurance policy

We will then provide you an offer subject to the standard title, appraisal, and buyer’s credit review. Once under contract, you will receive your cash as soon as all of the documentation can be obtained. This typically takes as little as 10-15 working days.

How will I be paid if I decide to sell my note?

The purchase price is paid in guaranteed funds (cashier’s check or wire transfer) upon receipt of the final transfer package and original documents.

We are happy to wire funds to the title company so you may exchange your original documents for the proceeds, assuring the safe and secure transfer of your valuable asset.

Why should I work with Tax & Homes?

We pride ourselves on:

Quick closings

Excellent customer service

Competitive quotes

Providing customized options

Strong financial backing

Flexibility on all note purchases

Confidentiality with all transactions

Credibility in the industry

At Tax & Homes we provide top rate service combined with the best prices available.